ASSOCIATED CEMENT COMPANY LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner, a company registered under the Companies Act, has filed the present writ application for quashing the demands dated May 30, 2002 and June 24, 2002 issued by the Deputy Commissioner, Commercial Taxes, Patna Special Circle, Patna, directing the petitioner to deposit the amount of sales tax under the provision of the Bihar Finance Act which he has not paid by claiming the same to be adjusted towards the entry tax already paid by it under the provisions of the Bihar Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1993 (hereinafter referred to as "the Act").

(2.) The necessary facts for disposal of the present application are that the petitioner being a company registered under the Companies Act has two manufacturing units one at Sindri and another at Jhinkpani, prior to bifurcation of the erstwhile State of Bihar the units were registered under the Bihar Finance Act and as well as under the Act and the consolidated registration was made at Patna Special Circle. On November 15, 2000 the erstwhile State of Bihar was bifurcated into two States, namely, State of Jharkhand and the State of Bihar and the said two manufacturing units of the petitioner now have fallen in the State of Jharkhand.

(3.) In the year 1995, the State Government has come out with industrial policy to give incentives to the new units or the existing units having additional/incremental production with regard to payment of sales tax. In terms of the aforesaid policy the claim of the petitioner is that it invested the money for additional/incremental production of the cement in the unit at Sindri and with regard to aforesaid additional/incremental production the exemption was granted in terms of the aforesaid industrial policy as well as under the provisions of the Bihar Finance Act for the period starting from April 1, 1998 to March 31, 2007. The petitioner also claimed exemption under the provisions of the Bihar Finance Act on the basis of the aforesaid industrial policy which was denied by the State and then he filed a writ application in this Court and the same has been dismissed and the matter is pending before the apex Court.